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The impact of weather on crop yield distribution in Taiwan: some new evidence from panel data models and implications for crop insurance

  • Chi-Chung Chen
  • Ching-Cheng Chang
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    This study examines the impact of weather on the yields of seven major crops in Taiwan based on pooled panel data for 15 prefectures over the 1977-1996 period. The unit root tests and maximum likelihood methods involving a panel data model are explored to obtain reliable estimates. The uncertain yield outcome is incorporated into a discrete stochastic programming model to address a comparison between sector analysis with and without considerations of a crop insurance policy under different climate change scenarios. Simulation results suggest that crop insurance may stabilize revenues and protect farmers from exposures to increasing weather-related risk. Copyright 2005 International Association of Agricultural Economics.

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    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1574-0864.2005.00097.x
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    Article provided by International Association of Agricultural Economists in its journal Agricultural Economics.

    Volume (Year): 33 (2005)
    Issue (Month): s3 (November)
    Pages: 503-511

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    Handle: RePEc:bla:agecon:v:33:y:2005:i:s3:p:503-511
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